NEOM Emerges as Top Choice Among Expatriates in Saudi Arabia
RIYADH — In a groundbreaking survey conducted by global property consultancy Knight Frank, NEOM has been crowned as the most coveted Giga project among expatriates residing in Saudi Arabia, with a whopping 29% expressing a strong desire to invest in homes within the futuristic city.
The survey, a pivotal component of Knight Frank’s inaugural Destination Saudi report, has revealed that Jeddah Central and King Salman Park secured the second and third spots in expatriates’ preferences, with 15% and 8% of respondents showing interest, respectively.
With a sample size of 241 expatriates, the comprehensive survey aimed to delve into their real estate investment inclinations within the Kingdom.
An overwhelming majority of respondents (56%) have called Saudi Arabia their home for over a decade, with a significant portion (76%) being employed in the private sector.
The survey also shed light on the divided interest among expatriates in NEOM’s specific areas, with a staggering 42% showing keen interest in The Line, and 19% leaning towards Sindalah Island.
Despite the high interest levels, financial constraints could pose a challenge for both expatriates and developers alike.
According to the survey findings, a staggering 87% of expatriate respondents have a budget of under SR3.5 million, with 32% aiming to spend below SR750,000.
These figures starkly contrast with the projected pricing for Giga project properties, which are expected to surpass the $1 million mark.
However, the survey also indicates a glimmer of hope, with 41% of respondents with budgets under $1 million expressing continued interest, indicating a willingness to adapt their financial plans.
Despite the financial considerations, the likelihood of expatriates making residential purchases within their preferred Giga projects remains high, with a staggering 72% indicating their readiness to proceed with such investments.
The average budget allocated by expatriates looking to purchase a home in a Giga project stands at a substantial SR2.7 million, far surpassing budgets set aside for properties elsewhere in the Kingdom.
An in-depth analysis by Knight Frank further unveils the immense spending power within Riyadh’s expatriate community, estimated at a whopping SR3.2 billion ($863 million), underscoring the vast capital poised to be injected into the Giga projects.
When contemplating the premiums expatriates are willing to shell out for the privilege of living in a Giga project as opposed to a non-Giga project, the average premium was found to be 5.7%, with 32% of respondents willing to pay a premium ranging from 2.5-5%.
Notably, high-earning expatriates, particularly those with monthly incomes exceeding SR40,000, showcased a readiness to pay premiums of 5-7.5%. — SG
